Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program - Various, including AL 97.036 ? Disaster Grants - Public Assistance (Presidentially Declared Disasters); AL 10.923 ? Emergency Watershed Protection Program; and AL 93.563 ? Child Support Enforcement - Reporting Grant Number & Year - Various Federal Grantor Agency -Various, including U.S. Department of Homeland Security; U.S. Department of Agriculture; and U.S. Department of Health and Human Services Pass-Through Entity -Various, including Nebraska Military Department and Nebraska Department of Health and Human Services Criteria - Title 2 CFR ? 200.510(b) (January 1, 2022) states, in part, the following: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502. Title 2 CFR ? 200.303 (January 1, 2022) states the following, in relevant part: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ``Standards for Internal Control in the Federal Government?? issued by the Comptroller General of the United States or the ``Internal Control Integrated Framework??, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is properly presented and includes all Federal expenditures made by the County during the fiscal year. Condition - Colfax County does not have adequate procedures in place to ensure the Schedule of Expenditures of Federal Awards (SEFA) is completed accurately, and includes all Federal expenditures paid by the County. Specifically, we noted that expenditures of $27,831 for Assistance Listing # 10.923 were omitted from the County's fiscal year ending June 30, 2021, SEFA. This was not considered a material error, and it would not have impacted major program determination for the fiscal year 2021 audit. Repeat Finding - No Questioned Costs - None Statistical Sample - No Cause - Administration of Federal awards is decentralized with each County office operating independently without any centralized reporting procedures in place to ensure all Federal expenditures of the County are accurately reported on the SEFA. Additionally, there is an overall lack of knowledge by County personnel related to Federal reporting and compliance requirements. Effect -Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or failure to audit programs that should be audited. Recommendation -We recommend the County establish written procedures to ensure the SEFA is complete and accurate. Such procedures may include, among other things, a requirement that all offices in the County responsible for administering a Federal grant report their grant expenditures, and related information, to a single individual in the County with overall responsibility for Federal reporting requirements. That individual should be knowledgeable of Federal reporting and compliance requirements, and review expenditures provided by each office to ensure all amounts are accurate and include all Federal expenditures of the County. View of Officials -The County will develop a Schedule of Expenditures of Federal Awards (SEFA) chart and designate the County Clerk to coordinate the collection of information from individual county offices on Federal awards expenditures.
CFDA Number, Federal Agency, and Program Name - 84.425J - U.S. Department of Education, Education Stabilization Fund - Higher Education Emergency Relief Fund Federal Award Identification Number and Year - 2022 - 84.425 J Finding Type - Material weakness Repeat Finding - No Criteria -Per 2 CFR 200.510(b), the College must prepare a schedule of federal expenditures (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as as determined in accordance with section 200.502. Condition - The SEFA was not complete or accurate. Questioned Costs - none Identification of How Questioned Costs Were Computed - N/A Context - As described in financial statement finding 2022-001, during fiscal year June 20, 2022, approximately $9.3 million of lost revenue was incorrectly recorded as revenue in fiscal year 2022. In addition, the College initially also incorrectly included the $9.3 million in lost revenue on the fiscal year 2022 SEFA. This lost revenue was incurred in fiscal year June 30, 2021 and has been excluded from the final June 30, 2022 SEFA. Recommendation -The College should implement a procedure to ensure the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - Management has accepted the finding. Moving forward, internal controls will be strengthened with regard to review and recording of revenue and expense recognition. Specifically, as it relates to this instance, review of documentation from the U.S. Department of Education (DOE) as it relates to HEERF grant funding will be more closely reviewed for understanding to include verification of understanding, guidelines and procedures from the DOE and other pertinent agencies for grant funding.
Criteria: The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502.? Condition: The total federal expenditures initially reported in the SEFA totaled $1,614,338. However, further examination determined an additional major program with $1,321,287 in federal funds from another federal pass-through grant should have been reported within the SEFA, increasing the SEFA in total. Cause: The School?s controls did not operate as designed to ensure the proper preparation and review of the SEFA included all direct and pass-through awards. Effect or potential effect: The SEFA was not fairly presented, in all material respects, in relation to the basic statements taken as a whole. Questioned costs: None Context: This is a condition identified based upon our review of the School?s compliance with specified requirements. The prevalence of this finding is detailed in the condition section above. Repeat finding: This is a repeat finding Recommendation: We recommend that the School review its policies and procedures to ensure that federal expenditures are correctly reported on the SEFA by ensuring program personnel review the SEFA awards for completeness prior to release to the auditors. View of responsible officials: The Organization?s management agrees with the finding and recommendation. Management of the Organization has developed a corrective action plan to address this finding.
Criteria: The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502.? Condition: The total federal expenditures initially reported in the SEFA totaled $1,614,338. However, further examination determined an additional major program with $1,321,287 in federal funds from another federal pass-through grant should have been reported within the SEFA, increasing the SEFA in total. Cause: The School?s controls did not operate as designed to ensure the proper preparation and review of the SEFA included all direct and pass-through awards. Effect or potential effect: The SEFA was not fairly presented, in all material respects, in relation to the basic statements taken as a whole. Questioned costs: None Context: This is a condition identified based upon our review of the School?s compliance with specified requirements. The prevalence of this finding is detailed in the condition section above. Repeat finding: This is a repeat finding Recommendation: We recommend that the School review its policies and procedures to ensure that federal expenditures are correctly reported on the SEFA by ensuring program personnel review the SEFA awards for completeness prior to release to the auditors. View of responsible officials: The Organization?s management agrees with the finding and recommendation. Management of the Organization has developed a corrective action plan to address this finding.
Assistance Listing Number, Federal Agency, and Program Name - 84.425, U.S. Department of Education, Education Stabalization Fund Federal Award Identification Number and Year - P425E203325, Various Pass-through Entity - N/A Finding Type: Significant Deficiency Repeat Finding - No Criteria - Expenditures are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) according to the basis of accounting followed by the nonfederal entity, per 2 CFR 200.502(a) and in accordance with the cost principles that the program is subject to (2 CFR 200, Subpart E). Condition - The College reported $593,703 of expenditures on the SEFA for disbursements to students that occurred prior to July 1, 2021. This treatment is not in accordance with the accrual basis of accounting following generally accepted accounting principles (GAAP), which is the basis of accounting for the College's SEFA. Questioned Costs - There were no questioned costs identified. Identification of How Questioned Costs Were Computed - Although the expenditures identified were not reported in the appropriate period for the purposes of the SEFA, based on audit procedures performed, they were still within the period of performance for the award. Context - Amounts that were disbursed to students in June 2021 as emergency grants under the Student Portion of the award for summer term were incorrectly not captured on the June 30, 2021 SEFA. These amounts were reported on the June 30, 2022 SEFA. Because they were not captured in the appropriate period, the College concluded to report them on the 2022 SEFA in order to ensure that the expenditures were subject to audit. Cause and Effect - Instead of the College accumulating the total expenditures by disbursement date, management accumulated the total expenditures by academic term. This resulted in a certain expenditures being reported on the SEFA in the incorrect period. Recommendation - We recommend that the College establish controls to ensure appropriate cutoff for SEFA reporting purposes. Views of Responsible Officials and Corrective Action Plan - The College will review its practices for SEFA reporting and in the future follow U.S. GAAP and the uniform guidance.
Assistance Listing Number, Federal Agency, and Program Name - 84.425, U.S. Department of Education, Education Stabalization Fund Federal Award Identification Number and Year - P425E203325, Various Pass-through Entity - N/A Finding Type: Significant Deficiency Repeat Finding - No Criteria - Expenditures are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) according to the basis of accounting followed by the nonfederal entity, per 2 CFR 200.502(a) and in accordance with the cost principles that the program is subject to (2 CFR 200, Subpart E). Condition - The College reported $593,703 of expenditures on the SEFA for disbursements to students that occurred prior to July 1, 2021. This treatment is not in accordance with the accrual basis of accounting following generally accepted accounting principles (GAAP), which is the basis of accounting for the College's SEFA. Questioned Costs - There were no questioned costs identified. Identification of How Questioned Costs Were Computed - Although the expenditures identified were not reported in the appropriate period for the purposes of the SEFA, based on audit procedures performed, they were still within the period of performance for the award. Context - Amounts that were disbursed to students in June 2021 as emergency grants under the Student Portion of the award for summer term were incorrectly not captured on the June 30, 2021 SEFA. These amounts were reported on the June 30, 2022 SEFA. Because they were not captured in the appropriate period, the College concluded to report them on the 2022 SEFA in order to ensure that the expenditures were subject to audit. Cause and Effect - Instead of the College accumulating the total expenditures by disbursement date, management accumulated the total expenditures by academic term. This resulted in a certain expenditures being reported on the SEFA in the incorrect period. Recommendation - We recommend that the College establish controls to ensure appropriate cutoff for SEFA reporting purposes. Views of Responsible Officials and Corrective Action Plan - The College will review its practices for SEFA reporting and in the future follow U.S. GAAP and the uniform guidance.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.